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Court Enters Final Judgment on Landmark $111 Million Verdict Against Desert Ridge Master Developer

October 22, 2010

PHOENIX, Oct. 22 /PRNewswire/ — Despite efforts by the Chicago-based Thomas J. Klutznick Company to avoid a massive judgment against its Phoenix affiliate, Northeast Phoenix Partners, the court has entered a final judgment affirming the unanimous ten-member Maricopa County jury award of $110,658,800 to the Phoenix-based Gray Development Group.

The case concerned Gray’s attempts to develop a 41-acre parcel located in Desert Ridge on Deer Valley Road in Phoenix directly across the street from the Desert Ridge Marketplace and the CityNorth development, owned by Klutznick.

Gray acquired the parcel for $32 million in 2004 at a state auction to build luxury apartments. Gray presented evidence at trial this summer proving that Northeast Phoenix Partners, an entity controlled by Klutznick, abused its powers as Master Developer in the area to block Gray’s development efforts between 2004 and 2007 in order to protect its neighboring CityNorth development.

“After harming the community and local businesses like ours with their abusive behavior this final judgment will immediately allow us to begin enforcement of the unanimous jury verdict by seizing Klutznicks’ assets,” Gray Development Founder & Chairman Bruce Gray said.

Gray was represented in the litigation by Michael Kibler of Simpson Thacher & Bartlett, who tried the case with his partner Barry Ostrager.

ABOUT GRAY DEVELOPMENT GROUP

Gray Development Group is a fully integrated real estate company focused on creating innovative urban multi-family residential communities. The talented real estate professionals of Gray Development Group provide considerable expertise in the areas of: Real Estate Development, Construction Management, Asset Management, Property Management, Architectural Design and Land Planning. Find out more about Gray Development Group at www.graydevelopment.com.

SOURCE Gray Development Group


Source: newswire



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